Investing for Children
Invest for a child’s future with the UK’s No.1 investment platform for private investors
Important information - The value of tax savings depends on individual circumstances and tax rules can change over time. Investments can go down in value as well as up, so your child could get back less than invested. A Junior SIPP is a type of pension for people happy to make their own investment decisions, and is not accessible until age 55 which is likely to rise by the time your child reaches retirement. If transferring a pension please ensure you will not lose valuable guarantees or incur excessive exit penalties. This is not personal advice. If you are unsure if an investment is right for you or your child, please seek advice.
Why invest for a child?
Even small amounts tucked away can build up a substantial nest egg, so the sooner you start putting money away for your child, the better.
- Provide a welcome financial boost when they need it
- Help them with the future costs of education, buying a home, getting married or even retiring
- Reduce the amount of inheritance tax that might need to be paid in future
And assuming a growth rate of 5% a year after charges, we’ve worked out in the table below how much a monthly investment could be worth in the future.
Remember investments can fall as well as rise in value, so your child could get back less than you put in. Inflation can also reduce the spending power of money over the long term.
In this video, we explain the key benefits of using a Junior ISA and how you can invest for the next generation.
Potential growth of a child's investment account
| Time period | £50 per month | £100 per month | £300 per month |
|---|---|---|---|
| 5 years | £3,404 | £6,809 | £20,427 |
| 10 years | £7,749 | £15,499 | £46,497 |
| 20 years | £20,372 | £40,745 | £122,237 |
Unsure which account is right for your child?
Whichever account you choose, you can be confident it will be easy to manage, there will be a wide investment choice and it will be great value for money. See how our three accounts for children compare. Tax rules can change and benefits depend on individual circumstances.
Compare accounts table
Overview
Tax benefits
Minimum to open
Maximum contributions
Eligibility
Junior Stocks and Shares ISA
Why wait to start investing in their future? A Junior ISA is a tax-efficient investment account for children under 18, and anyone can add money to it.
Tax benefits
- Tax-free growth
- No UK tax on income
- Tax-free withdrawals from age 18
Minimum to open
£100
lump sum
or
£25
per month
Maximum contributions
£9,000 per year (for the 2025/2026 tax year)
Eligibility
- Parents or guardians can open a Junior ISA for their child, if the child is a UK resident and under 18 years old
- Anyone born between 1 September 2002 and 2 January 2011 needs to have transferred their Child Trust Fund to a Junior ISA to open an account
Junior SIPP
A Self-Invested Personal Pension you can start on behalf of a child to help them invest for retirement.
Tax benefits
- 20% boost from the government
- Tax-free growth
- No UK tax on investment income (i.e. dividends and interest payments)
- Up to 25% can usually be withdrawn tax free, the rest is taxed as income
Minimum to open
£100
lump sum
or
£25
per month
Maximum contributions
£3,600
per year (including £720 tax relief) for the 2025/2026 tax year
Eligibility
- Parents or guardians can open a Junior SIPP for their child, if the child is a UK resident
Bare Trust Account
Invest for a child with no investment limits using a bare trust.
Money can be accessed before the child turns 18 as long as it is used for their benefit. From 18 the child is automatically entitled to the money in the bare trust.
Tax benefits
- Investments held on behalf of a child are usually taxable at their rates
Minimum to open
£100
lump sum
or
£25
per month
Maximum contributions
Unlimited
Eligibility
- Anyone can open a Bare Trust Account on behalf of a child
- The person giving the money, the person running the account and the child all need to be UK resident
Why choose HL for your child's investments?
- Security - we're trusted by over 1.9 million clients
- UK-based helpdesk - speak to our client support experts if you have any questions
- Family-friendly - it's easy to link and manage all your family's accounts in one place
- Award-winning - we've won over 200 awards, including Best Online Stockbroker at the Personal Finance Awards in 2022, 2023 and 2024
- Expertise - investment ideas from our expert analysts
Investing for a grandchild?
Although most accounts for children must be opened by a parent or legal guardian, there are exceptions.
Grandparents can pay into our three junior accounts including a Junior ISA and Junior SIPP. They can also set up and manage a Bare Trust Account, giving their grandchild even more of a helping hand for the future.